Torcuil Crichton and Douglas Fraser There is "fury" in Scotland at the "massive national outrage" that the Treasury is taking North Sea oil revenues and refusing to hand them back in reduced forecourt taxes, according to First Minister Alex Salmond.
With fuel price inflation becoming a hot political issue, the Nationalist leader raised the temperature further with a thundering attack on the UK Government's tax regime.
He was in turn denounced from Whitehall as "deeply irresponsible".
Mr Salmond said it was an "extraordinary position" that Scots are left with soaring prices at the pumps while every other oil producer in the world benefits, and that the UK Treasury is expected to reap an additional £4bn in North Sea revenues - on top of the £10bn predicted from last year's forecasts.
During First Minister's Questions at Holyrood, he replied to a question about the "bittersweet irony" of Scotland's position: "I think the mood actually is becoming one of fury in Scotland.
"That we alone among the oil producers of the world, producing 10 times our consumption of hydrocarbons at the moment, should be faced with an extraordinary position that while every oil producer through sovereign funds and the build-up of huge sums of capital has the resources available to power their economy into the future, what's left for the people of Scotland is paying sky high prices at the pumps and the industries of Scotland facing escalating costs.
"A bittersweet irony? A massive national outrage - and it's time we did something about it."
David Cairns, the Scotland Office minister, responded: "Unlike the Prime Minister, who is engaged in constructive discussions to solve the problem, Alex Salmond's comments are deeply irresponsible and designed to provoke a reaction rather than to find a solution". Another UK Government spokesman claimed the additional oil revenue to the Treasury will have to be spent on increased government costs, leaving a "broadly revenue neutral effect on public finances".
The SNP administration is pushing for a fuel price regulator, which would reduce fuel duty to compensate for rising VAT.
A similar proposal was yesterday tabled by a former UK Transport Minister, Stephen Ladyman. The MP said Labour should ditch the inflation-plus fuel price accelerator, along with raised taxes on high-polluting vehicles, and instead "strike a new deal with the motoring public", who he said see the current regime as unfair.
His proposals were among those set out by a group of 10 Blairite MPs aimed at reviving Labour's poor electoral standing. Others called for Gordon Brown's complex tax credit system to be replaced with simpler flat-rate support, dumping several environmental policies, and help for mortgage arrears.
The government's case for retaining its current level of fuel tax, in the face of growing motorist protest and haulier demonstrations, was further weakened yesterday by new data showing diesel in Britain is western Europe's cheapest if taxes are excluded.
Business Secretary John Hutton published figures showing unleaded petrol is second cheapest without tax.
When British diesel cost £1.17, it was the most expensive in the EU, yet all but 48.8p of that was taken in tax. The price has since soared, and on Tuesday, a hauliers' protest demanded a 25p per litre rebate.
Increased pressure on the government to postpone October's planned 2p increase in petrol duty came from an opinion poll showing Labour has fallen to its lowest support since records began and Mr Brown's personal rating is now the same as John Major's at his nadir.
In the first survey since last week's Crewe and Nantwich by-election the Daily Telegraph YouGov survey puts Labour on 23 points and the Conservatives on 47 - a Tory lead of 24 points.
Conservative Treasury spokesman Philip Hammond commented: "Gordon Brown's claim that world oil prices are to blame for the soaring cost of motoring has been exposed as a sham."
Chancellor Alistair Darling has signalled that he may postpone the 2p fuel duty rise due in October. But Downing Street and the Treasury played down speculation that the government could ditch plans for retrospective rises of up to £230 a year in road tax for millions of vehicles.
Adding to the energy gloom, British Airways announced fuel surcharges on all tickets from next Tuesday. Pay fails to keep up with inflation
By Torcuil Crichton Chief UK Political Correspondent The gap between average pay and retail inflation is now 1%, the biggest difference since last November, according to a new report.
The analysis of salaries shows that average pay deals have fallen slightly to 3.2% in recent months, widening the gap with the rate of inflation and adding to the sense of economic foreboding.
Deals averaged 3.5% at the end last year and the start of 2008, but were worth less in the quarter to April, said pay analysts IRS. The gap between average pay and RPI inflation, currently 4.2%, is now 1% meaning that wages are not keeping up with the cost of living.
Despite the recent fall one-third of all pay deals were higher than a year ago, while two out of five were lower, the study showed.
Wage deals in the public sector averaged 2.5% in the year to April, 1% less than settlements in private firms, the study of 239 agreements showed.
Sheila Attwood of IRS said: "Despite the increase in RPI inflation on the April 2008 data, our measure of pay settlements has fallen to its lowest level since the end of 2007."
